Exports had remained stagnant or drastically declined due to low world prices, failure to adapt to changing markets and policies penalizing their traditional activity, Maldives’ delegate told the Second Committee (Economic and Financial) on 20 October 2016 as it began its debate on macroeconomic policy questions.

Speaking for the Alliance of Small Island Developing States, he said those nations were heavily dependent on imports, while exports were a central source of foreign exchange and cash income. Stressing the need for a fair multilateral trading system to ensure sustained growth in global trade, he said the international trade regime should accommodate the needs of small island States.

Similarly, Bangladesh’s representative, speaking for the Group of Least Developed Countries, said they had increased their share in world goods and commercial services exports from 0.7 per cent in 2005 to 1.03 per cent in 2014, but that it had dropped by 20 per cent in 2015. Small islands were losing comparative trade advantage due to reduced tariff lines under the World Trade Organization.

Erosion of preference and loss of tariff revenue, as well as employment and various kinds of adjustments, should be fully compensated for least developed countries, he continued. They urgently needed duty- and quota-free market access for all products, simplified and transparent rules of origin and financial and trade capacity-building.

Malaysia’s delegate, speaking for the Association of Southeast Asian Nations (ASEAN), said, on a more positive note, that trade in his group had remained upbeat and economies resilient, with gross domestic product (GDP) nearly doubling since 2007. Stressing that trade must be supported by deliberate policies and global partnerships, he said regional trade liberalization had contributed significantly to freer movement of goods across ASEAN member States.

Introducing the report, “Trade and Development Board on its sixty-second executive session”, a senior official of the United Nations Conference on Trade and Development (UNCTAD) said the world was in a period of weak trade growth that could seriously affect delivery of the Sustainable Development Goals. World merchandise trade volume grew by only 1.5 per cent in 2015, and world trade in both goods and services contracted that year for the first time since the financial and economic crisis of 2008‑09.

Global trade dynamism might have already passed its peak levels as value chains became less dynamic relative to GDP growth rates, he said. Least developed nations were behind in meeting the target of doubling their share of world trade as set out under the Istanbul Programme of Action and under the Sustainable Development Goals.

Belarus’ delegate, also noting that trade volumes were declining worldwide, warned that they would be at their lowest since the Second World War if that trend continued. Her Government was pushing for a trade cooperation action plan with middle income countries, as they had been cast aside when it had come to trade and development agreements.

Speakers also focused on the need to cancel least developed countries’ debt and increase official development assistance for all developing countries if they were to achieve the 2030 Agenda for Sustainable Development. They also stressed the need to reform the international financial architecture and tackle volatility in exchange rates as well as financial flows.

Also speaking were representatives of Thailand (for the “Group of 77” developing countries and China), Jamaica (for the Caribbean Community), Dominican Republic (for the Community of Latin American and Caribbean States), Australia (for the Cairns Group), Brunei Darussalam, Philippines, Mongolia, India, Russian Federation, Indonesia, Norway, Peru, Burkina Faso, Singapore, Zambia and Brazil.

Presenting reports on Follow-up to the International Conferences on Financing for Development and the international financial system and development was the Director of the Financing for Development Office, Department of Economic and Social Affairs. Introducing the report on international trade and development was the Head of the Trade Negotiations and Commercial Diplomacy Branch, United Nations Conference on Trade and Development. Presenting the report on external debt sustainability and development was the Head of the Debt and Development Finance Branch, United Nations Conference on Trade and Development.